Question Detail: | AMM, Inc., had sales of $41.0 million for fiscal 2010. The company's gross profit ratio for that year was 23.0%. | | Required: | | (a) | Calculate the gross profit and cost of goods sold for AMM, Inc., for fiscal 2010. (Round your answers to 2 decimal places. Enter your answers in millions. Omit the "$" sign in your response.) | | Gross profit | $ | million | | Cost of goods sold | $ | million | | (b) | Assume that a new product is developed and that it will cost $498 to manufacture. Calculate the selling price that must be set for this new product if its gross profit ratio is to be the same as the average achieved for all products for fiscal 2010. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) | | (c) | From a management viewpoint, it could use the estimated selling price as a "target" in conducting marketing research studies to assess its ultimate prospects for success at this price. | | Ringemup, Inc., had net income of $474,400 for its fiscal year ended October 31, 2010. During the year the company had outstanding 35,300 shares of $4.60, $50 par value preferred stock, and 113,000 shares of common stock. | | Required: | | Calculate the basic earnings per share of common stock for fiscal 2010. (Round your answer to 2 decimal places. Omit the "$" sign in your response.) | | The following information is available from the accounting records of Spenser Co. for the year ended December 31, 2010: | | Selling, general, and administrative expenses | $ | 40,800 | | Accounts payable | 68,000 | | Extraordinary gain from lawsuit settlement, net of tax expense of $22,400 | 83,200 | | Research and development expenses | 29,600 | | Loss from discontinued operations net of tax savings of $4,000 | 12,800 | | Provision for income taxes | 59,200 | | Net sales | 463,200 | | Interest expense | 51,200 | | Net cash provided by operations | 118,400 | | Cost of goods sold | 217,600 | | (a) | Calculate the operating income for Spenser Co. for the year ended December 31, 2010. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) | | (b) | Calculate the company's net income for 2010. (Input the amount as positive value. Omit the "$" sign in your response.) | | Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2011. Also shown is a partially completed comparative balance sheet as of December 31, 2011 and 2010: | | HARTFORD, INC
Statement of Cash Flows
For the year Ended December 31, 2011 | | Cash Flows from Operating Activities: | | Net income | $ | 8,100 | | Add (deduct) items not affecting cash: | | Depreciation expense | 40,500 | | Decrease in accounts receivable | 20,700 | | Increase in Inventory | (6,300 | ) | | Increase in notes payable | 10,800 | | Decrease in accounts payable | (5,400 | ) | | Net cash provided by operating activities | $ | 68,400 | | Cash Flows from Investing Activities: | | Purchase of equipment | $ | (45,000 | ) | | Purchase of buildings | (43,200 | ) | | Net cash used by investing activities | $ | (88,200 | ) | | Cash Flows from Financing Activities: | | Proceeds from short-term debt | $ | 4,500 | | Cash used for retirement of long-term debt | (22,500 | ) | | Proceeds from issuance of common stock | 9,000 | | Payment of cash dividends on common stock | (2,700 | ) | | Net cash used by financing activities | $ | (11,700 | ) | | Net decrease in cash for the year | $ | (31,500 | ) | | Required: | | (a) | Complete the December 31, 2011 and 2010, balance sheets. (Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) | | HARTFORD, INC
Comparative Balance Sheets
December 31, 2011 and 2010 | | Assets | 2011 | 2010 | | Current Assets: | | Cash | $ | $ | 79,200 | | Accounts receivable | 65,700 | | Inventory | 50,400 | | Total current assets | $ | $ | | Land | $ | $ | 36,000 | | Buildings and equipment | 234,000 | | Less: Accumulated depreciation | (110,700) | | Total land, buildings and equipment | $ | $ | | Total assets | $ | $ | | Liabilities | | Current Liabilities: | | Accounts payable | $ | $ | 26,100 | | Short-term debt. | 28,800 | | Notes payable | 32,400 | | Total current liabilities | $ | $ | | Long-term debt | $ | 76,500 | $ | | Owners' Equity | | Common stock | $ | 36,000 | $ | | Retained earnings | | Total owners' equity | $ | $ | | Total liabilities and owners' equity | $ | $ | | (b) | Complete the statement of changes in retained earnings for the year ended December 31, 2011.(Amounts to be deducted should be indicated with minus sign. Omit the "$" sign in your response.) | | HARTFORD, INC
Statement of Changes in Retained Earnings
For the year Ended December 31, 2011 | | Retained earnings, January 1, 2011 | $ | | Add: Net income for the year | | Less: Cash dividends for the year | | Retained earnings December, 31, 2011 | $ | |